Flextronics completes the sales of Flextronics Semiconductor and 70% of Flextronics Network Services
Sep 13, 2005
Flextronics (Nasdaq: FLEX) announced that it has completed the previously announced sales of Flextronics Semiconductor and 70% of Flextronics Network Services (FNS).
Flextronics has sold its semiconductor division for cash to AMIS Holdings, Inc., parent company of AMI Semiconductor, Inc. In a separate transaction, FNS has merged with Telavie AS, a company wholly-owned by Altor 2003 Fund, a Nordic private equity firm. Flextronics has received a cash payment and has retained a 30% ownership stake in the merged company along with future contingent and deferred purchase price payments.
"These transactions allow Flextronics to concentrate our efforts and resources on the core EMS business, which includes design, vertically-integrated manufacturing services and logistics, and to deliver the services that best meet our customers' needs. We believe these transactions are an excellent fit for all parties involved, and we expect continued success for both the FNS and Flextronics Semiconductor teams moving forward," said Michael Marks, Chief Executive Officer of Flextronics.
As a result of these transactions, Flextronics has received cash in excess of $500 million and a 30% ownership stake in the merged network services company, which has been named Relacom. In addition, Flextronics expects to receive additional contingent and deferred payments from the sale of FNS. Further details related to the sale of these businesses and the expected use of proceeds will be discussed in Flextronics second quarter earnings conference call which will take place in late October 2005.